Core Insights - Datasea Inc. reported a significant increase in gross profit and gross margin for the second quarter of fiscal year 2026, with gross profit rising by 278% year-over-year and gross margin expanding to 8.7% [4][7]. Financial Performance - Revenue for the six months ended December 31, 2025, is expected to be approximately $26.68 million [7]. - Gross profit is anticipated to be around $2.32 million, marking a 278% increase compared to the same period in fiscal year 2025 [7]. - Gross margin is projected to be approximately 8.70%, a notable improvement from 1.48% in the prior-year period [7]. Strategic and Operational Review - The company is transitioning towards profitability optimization and technology-driven value creation, moving away from a revenue scale-focused growth model [3]. - Key initiatives contributing to the improvement in gross profit and margin include a reduction in low-margin services, an increased focus on high-margin customized solutions, and enhanced cost controls [8]. Management Commentary - The CEO highlighted that the period ended December 31, 2025, represents a milestone in the company's strategic transformation, emphasizing the effectiveness of the shift towards high-value, technology-driven businesses [4][5]. Technology and Innovation - Datasea is advancing its core acoustic technologies and exploring applications in health management and intelligent devices, including non-invasive acoustic modulation and related health robot solutions [6]. - The company aims to deepen the application of high-margin 5G+AI multimodal digital solutions and increase the contribution of technology-oriented offerings within its business mix [5].

Core Viewpoint - Datasea Inc. has experienced recent fluctuations in its stock price and trading volume, but the company asserts that its operations and financial position remain stable, with no undisclosed material information affecting the market activity [2][3]. Financial Performance - For the first fiscal quarter of 2026, Datasea reported a gross profit of USD 1.17 million, representing a 4.9 times increase year-over-year, and an improvement in gross margin to 8.46% [3]. - The company is focused on high-margin, technology-driven solutions and is evaluating strategic measures to enhance market recognition of its financial progress and growth potential [3]. Strategic Initiatives - Datasea has achieved significant technological advancements in acoustic technologies and brain-computer interface applications, which are expected to strengthen its competitive advantages and growth momentum [4]. - The company has established a wholly-owned subsidiary, Datasea Acoustics LLC, in Delaware to facilitate its entry into the U.S. market as part of its global expansion strategy [6]. Communication and Transparency - Datasea emphasizes the importance of transparent communication with investors and the market, committing to provide timely updates on its business progress in accordance with disclosure requirements [5].

Core Insights - Datasea Inc. achieved a significant milestone in fiscal year 2025, reporting record revenue of $71.62 million, a 198.7% increase from $23.97 million in fiscal year 2024, and reached net income breakeven in the fourth quarter [2][3][7] Financial Highlights - Revenue for fiscal year 2025 was $71.62 million, up 198.7% from $23.97 million in fiscal year 2024 [2][7] - Gross profit increased to $2.44 million, a 415.5% rise from $0.47 million year-over-year [2][7] - The company achieved net income breakeven in the fourth quarter of fiscal year 2025, with a net loss for the year reduced to $5.09 million from $15.7 million in fiscal year 2024, marking a 67.6% decrease [2][7] - Intangible assets grew to $3.50 million, a 540.3% increase from $0.55 million in the prior year, reflecting the success of the company's strategic transformation [7] Business Segments - The AI Multimodal Digitalization segment generated revenue of $70.68 million, representing a 199.49% year-over-year increase, significantly contributing to overall performance [7][10] - Newly developed high-margin customized solutions contributed approximately RMB 8.9 million (US$ 1.24 million) in revenue, emerging as a new growth driver [7][10] - The Acoustic High-Tech segment recorded revenue of RMB 3.7 million (US$ 0.5 million) from comprehensive acoustic solutions, indicating a strategic shift towards high-margin solution products and services [10] Management Commentary - The CEO highlighted the company's transition from building scale to achieving profitability and sustainable growth, emphasizing the success of its dual-engine business model [3][10] - The company aims to maximize shareholder value and has established a solid foundation for long-term goals [3] Business Outlook - Datasea plans to continue advancing its dual growth engines of AI Multimodal Digitalization and Acoustic High-Tech to drive diversified high-tech growth [8][10] - The company is focusing on expanding its presence in healthcare through R&D in acoustics and neuro-regulation, aiming to build a closed-loop system for non-pharmacological health management [10] - Datasea is also pursuing an M&A strategy to enhance its capabilities and market channels in both China and the United States [10]